Premier Inn owner Whitbread will see a boost from the Coronation after its Westminster hotels sold out within 15 minutes of the announcement of the date of the event.
The hotelier’s profits rocketed to above pre-pandemic levels as it said it was also benefiting from “the structural decline in the independent hotel sector” as travellers opt for branded chains rather than family-run locations.
The chain outperformed the wider mid-range and budget hotel market, with revenue of £2.6 billion but CEO Dominic Paul — who took over from Alison Brittain in January — stressed that the group deserved credit for its moves to take advantage of shifts in the market
“While that provided a healthy backdrop, it was our own initiatives and strong differentiated strategy that helped us achieve those results,” he said.
He also highlighted Premier Inn’s room rates, which had risen by an average of just £10 in the past three years.
Profit at the company, which also owns Beefeater restaurants, soared 88% year-on-year to £888 million, which was £135 million more than in the last year before the pandemic hit.
Paul noted that the Coronation, when there will be new menu items, was only one weekend and said the main reason to be confident in the business was a strong combination of tourists and midweek business travellers.
“It’s one weekend out of 52,” he said. “The thing that gives us confidence is a really balanced business between leisure and business.”
The chief executive is still wary about inflation, though, with the business expecting its costs to rise by 7-8% next year.
“It’s too early to say inflation has peaked — we don’t know that,” he said. “Some items are coming up; some are coming down.” Whitbread shares were up 4.8% to 3,297.0p today.
